You now own 84 shares of XYZ stock which is selling for $40 each,4 of which you just received from the XYZ corporation.XYZ has declared a:
A) stock dividend of 5%.
B) cash dividend of $4.
C) stock dividend of 4.76%.
D) cash dividend of $160.

Question

Quizplus · Accepted Answer

A stock dividend of 5% means you would receive 4.2 additional shares (84 x 0.05 = 4.2), bringing your total shares to 88.2. Since you just received 4 additional shares, it is likely that the company has declared a stock dividend rather than a cash dividend.

You Now Own 84 Shares of XYZ Stock Which Is